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The fundamental value of $1 is the full faith and credit of the United States Government and the economy of America. The fundamental value of cryptocurrencies

The fundamental value of $1 is the full faith and credit of the United States Government and the economy of America. The fundamental value of cryptocurrencies is a shared agreement of value amongst investors. I imagine some snotty 14-year old would argue that there is no fundamental distinction between the two but that's not being economically serious.

dclowd9901 9y ago
Yep. This has been my problem with it since the beginning. A dollar isn't just a dollar. It's a monetary unit that is intrinsically tied into the power and faith of hundreds of millions of people in the idea of a country. If people stopped believing in America, the dollar would go. How little would have to fail for Bitcoin to have the same problem. I've heard that if the person who owns the large stake in Bitcoin were to transact even one of their coins, all hell would break loose. That doesn't spell stability to me. Neither does "forking" the currency.
- googletazer 9y ago
  >If people stopped believing in America, the dollar would go. Interesting, considering that the purchasing power of the dollar has been long in decline. It holds its place against other currencies, but with dollars you can't buy as much stuff/assets today as you could yesterday.
imaginenore 9y ago
I'd argue more, according to your definitions, the "fundamental value" of the dollar (which you conveniently didn't specify) relies on violence (as in, pay up of guys with guns will put you in prison). Whereas the fundamental value of Bitcoin is determined by the free market. It's quite clear to me which one is a more moral system. Again, based on your own definitions.
- Goronmon 9y ago
  I'd argue more, according to your definitions, the "fundamental value" of the dollar (which you conveniently didn't specify) relies on violence (as in, pay up of guys with guns will put you in prison). Whereas the fundamental value of Bitcoin is determined by the free market. It's quite clear to me which one is a more moral system. It's not really clear to me how this word salad you've thrown out is supposed to be an actual argument.
- jules 9y ago
  The property rights to your belongings are also fundamentally reliant on the government's promise to use violence to enforce those rights. Concluding that it is therefore immoral is too simplistic. You have to take into account the full consequences of not enforcing those rights, and then determine whether society as a whole is better off or worse off.
- rm_-rf_slash 9y ago
  Using your same argument, taxes are a peaceful price for civilization. I don't need armed tax collectors busting down my door to take my money because we live in civilized society. The fundamental value of a national currency is not violence. It is civil society.
rubin55 9y ago
Yes. Thousand times this. Thank you!

dclowd9901 9y ago

Yep. This has been my problem with it since the beginning. A dollar isn't just a dollar. It's a monetary unit that is intrinsically tied into the power and faith of hundreds of millions of people in the idea of a country. If people stopped believing in America, the dollar would go. How little would have to fail for Bitcoin to have the same problem. I've heard that if the person who owns the large stake in Bitcoin were to transact even one of their coins, all hell would break loose. That doesn't spell stability to me. Neither does "forking" the currency.

googletazer 9y ago
>If people stopped believing in America, the dollar would go. Interesting, considering that the purchasing power of the dollar has been long in decline. It holds its place against other currencies, but with dollars you can't buy as much stuff/assets today as you could yesterday.

imaginenore 9y ago

I'd argue more, according to your definitions, the "fundamental value" of the dollar (which you conveniently didn't specify) relies on violence (as in, pay up of guys with guns will put you in prison). Whereas the fundamental value of Bitcoin is determined by the free market. It's quite clear to me which one is a more moral system. Again, based on your own definitions.

Goronmon 9y ago
I'd argue more, according to your definitions, the "fundamental value" of the dollar (which you conveniently didn't specify) relies on violence (as in, pay up of guys with guns will put you in prison). Whereas the fundamental value of Bitcoin is determined by the free market. It's quite clear to me which one is a more moral system. It's not really clear to me how this word salad you've thrown out is supposed to be an actual argument.
jules 9y ago
The property rights to your belongings are also fundamentally reliant on the government's promise to use violence to enforce those rights. Concluding that it is therefore immoral is too simplistic. You have to take into account the full consequences of not enforcing those rights, and then determine whether society as a whole is better off or worse off.
rm_-rf_slash 9y ago
Using your same argument, taxes are a peaceful price for civilization. I don't need armed tax collectors busting down my door to take my money because we live in civilized society. The fundamental value of a national currency is not violence. It is civil society.

rubin55 9y ago

Yes. Thousand times this. Thank you!